Coinbase Files FOIA, Asks SEC for Crackdown Costs
Coinbase has demanded transparency from the US Securities and Exchange Commission (SEC) barely a week after the agency cleared the lawsuit against the exchange.
It has filed a Freedom of Information Act (FOIA) request seeking detailed records of how much taxpayer money was spent targeting crypto firms during Gary Gensler's contentious tenure as SEC Chair between April 2021 and January 2025.
"We know the previous SEC's regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars?" asked Paul Grewal, Coinbase's chief legal officer.
One simple, but powerful question: How much did Gary Gensler’s tenure as SEC Chair cost Americans — not just in lost innovation and jobs, but in hard cash?
The FOIA request demands a detailed breakdown.
The total number of investigations and enforcement actions against crypto firms
The number of SEC employees and contractors involved
A complete cost analysis of these actions
Details about the now-disbanded Crypto Assets and Cyber Unit
The goal? To determine whether the SEC’s aggressive stance was a necessary safeguard for investors and a prudent use of public coffers, or a costly overreach that stifled innovation and drained public funds.
SEC under Gary Gensler
Under Gensler’s leadership, the SEC launched over 100 enforcement actions against crypto companies, targeting industry giants such as Coinbase, Kraken, and Ripple.
Most of these high-profile cases today stand cancelled. The question that remains though is if the entire exercise worth it.
Why Now?
More than seeking the numbers, this is about transparency. The disclosure of information on SEC’s spending could
Restore confidence in both regulators and the crypto market
Provide a factual basis for more informed policy discussions
Set a precedent for accountability in regulatory actions
“I expect SEC crypto enforcement to continue, but with different priorities. Investor protection will be balanced with the SEC’s co-equal mandates of facilitating capital formation and maintaining orderly markets,” said Robert Cohen, former head of the SEC’s crypto unit.
A New Start for Trump’s SEC
The regulatory landscape is already shifting. Since President Trump’s inauguration, the SEC has dropped several high-profile cases against crypto firms, including its lawsuit against Coinbase on February 27. Other dismissals include actions against Kraken, Gemini, and Yuga Labs.
Read: Case Closed: SEC’s Crypto Cleanup🧹
The agency has also reorganised its crypto enforcement division, establishing a new task force led by Commissioner Hester Peirce, a well-known advocate for balanced crypto regulation.
This signals a significant change in approach — one that could prioritise innovation over punishment.
What Next?
Compliance is legally required under an FOIA request, SEC is yet to respond.
One thing is certain: the outcome could reshape the future of crypto regulation — and determine whether everyday investors can finally trust the system meant to protect them.
The SEC’s actions don’t just impact big companies. They ripple through the entire market, influencing everything from token prices to investor confidence.
Coinbase’s FOIA request is fighting for a fairer, more accountable system — one that works for everyone, not just the regulators.